Can anyone give me some guidance on this please. I have a client who receives a charitable payment. I discovered that Pension Credit (SC only) had included this in their initial assessment. The DWP admitted official error and awarded the correct amount of PC (SC only) back to the start of Pension credit award, April 2004.

Housing Benefit had also counted this charitable payment, from 2002, prior to the onset of PC. They have now reassessed the claim and removed the charitable payment throughout the whole period.

HOWEVER the local authority have used the amended (increased) Pension Credit figure from April 2004 in their new calculations. The net result of this has been an increase in entitlement. Removing the charitable payment gained my client approx £9 pw, but the increase in SC lost her approx £3 pw in HB which is effectively an overpayment, although hidden within the new entitlement.

I think that it is correct for HB to take into consideration the amended (increased) award of pension credit (SC only) back to April 2004, in line with the DWP’s revised award. However, I would like to know whether the overpaid element of HB is recoverable, as after all, it resulted from the DWP’s official error. Should the two adjustments be looked at separately? I would appreciate any help as I have limited time to challenge this.

HBR 99 defines the meaning of an overpayment. Lifted from it: "...'overpayment' means any amount which has been paid by way of housing benefit and to which there was no entitlement...".

Based on the information given, your client has never received more benefit than she was entitled to.

If that is correct, there is no overpayment. Therefore, there is no issue about "official error".

Regards